Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The May ferrous scrap market settled in most regions on Friday with increased pricing on secondary grades amid improved demand compared to April activity.


In Pittsburgh, prime grade #1 busheling remained flat at $562/gt delivered with the material moving for the most part, at $560/gt although some sales were reported as high as $585/gt. Shredded rose by $23/gt to $447/gt delivered Pittsburgh consumer and P&S 5ft increased by $20/gt to $448/gt delivered.


In the Ohio valley, secondary grades moved up by $20/gt with #1 HMS settling at $420/gt delivered, P&S 5ft trading at $435/gt and shredded finished at $455/gt delivered Cleveland/Youngstown consumer. Regional primes remained rangebound for #1 bundles that trended flat at $587/gt and #1 busheling that ticked up $2/gt to $588/gt delivered.


Houston indexes were unchanged for #1 busheling at $571/gt delivered as secondary grades traded at $15-20/gt above April settled prices. The index for #1 HMS increased by $18/gt to $387/gt delivered as shredded increased by $19/gt to $432/gt delivered, and P&S 5ft rose by $20/gt to $419/gt delivered. 


In the Carolinas, #1 busheling remained unchanged at $548/gt as #1 HMS rose by $20/gt to $394/gt delivered. P&S 5ft climbed by $21/gt to $416/gt delivered and shredded rose by $18/gt to $420/gt delivered. 


In the Dallas region, some garnered prices up by $20/gt against April settled prices on secondary grades while primes were unchanged, but others are still waiting to place their volumes as a large local mill is offering sideways mill pricing on secondary grades. Some market participants also informed that they were withholding some volumes on expectations of higher price moves in June or did not place as many tons due to maintenance at their scrap yards in May.


The present, improved momentum is anticipated to carry into next month as well as into Q3. Expectations for June began at up $10-20/gt against May settled prices. With Turkish import prices increasing and expectations of deals above $500/mt cfr on HMS 1&2 (80:20) and futures market estimated at $530/mt cfr on the grade, some along the coastlines are evaluating if domestic prices in those regions could increase by $40-50/gt in June against May settled prices. 


The expectation of higher Turkish import prices, which would support global moves, is also supported by the Turkish rebar price levels that have room to increase and give room to raw materials price increases. US domestic finished steel prices on HRC and rebar continue increasing without foreseeable drops in the near future on strong demand. 

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